Legislation to limit which businesses are considered joint employers passed the U.S. House of Representatives Wednesday night.
As the news website HR Dive reports, the bill would effectively overturn the National Labor Relations Board expansion of who are joint employers. NLRB’s expansion would have made small businesses potentially liable for the acts of contractors and franchisers.
The Save Local Business Act (H.R. 3441, Byrne, R-AL) would amend the National Labor Relations Act and the Fair Labor Standards Act of 1938 to clarify that joint employers are those “directly, actually, and immediately, and not in a limited and routine manner, exercises significant control over the essential terms and conditions of employment….”